Latin America
PPG Comex Bullish on Mexico, Central America
by Charles W. Thurston
Latin America Correspondent
thurstoncw@rodmanmedia.com
Despite sliding sales for paint and coatings in Latin America overall, PPG Comex is optimistic about
sales in Mexico and Central America this
year and for several years thereafter. In its
third-quarter 2016 financial report, PPG’s
notes on Latin America said, “Within the
region, sales volumes continued to grow in
Mexico and Central America, and declined
in Brazil due to weak overall economic conditions. We expect above-market performance to continue in Mexico and Central
America.” Net Latin American sales in Q3
dropped to $344 million from $367 million, or 6. 3 percent, the company reported.
Regional Architectural Paint
Sales Mixed
Along with strong architectural sales in
Mexico, Comex has expanded its store network this year substantially. “Architectural
sales volumes declined considerably in
Brazil and China, with both countries
declining more than 20 percent, reflecting regional end-use market weakness.
Local currency architectural coatings sales
growth in Mexico was more than double
the country’s GDP growth due to continued
market penetration and over 100 new store
openings year-to-date,” the report noted.
“Additionally, architectural coatings sales
continued to expand in Central America,
up a high-double digit percentage, as the
company continues to leverage the Comex
and Consorcio Latinoamericano acquisitions and is successfully establishing a presence in the region,” the report indicated.
Comex has a total store network of some
4,000 locations.
Other Segments Buoyed in
Mexico
“Protective coatings sales volumes grew
versus the prior year, led by the U.S., Asia
Pacific and Latin America, including ben-
efits from expanded distribution through
the Comex concessionaire network,” PPG
reported. “Global industrial coatings and
specialty coatings… sales volumes in
Latin America were flat,” it added.
Near term sales will be aided by the
August opening of a new Comex distribution center in Hermosillo, in Sonora state,
Mexico. The facility can house about 3. 5
million liters of paints and coatings, and
location of the center will reduce shipping
time in Mexico’s Northwest region – including growing cities like growing cities such
as Mexicali, Chihuahua, Los Cabos and
La Paz – from five days to one day or less,
the company noted. Some 30 stores will be
opened in this sub-region this year out of
170 country-wide, the company reported.
Regional Capacity
Expansion Plans
Marcos Achar, the general director of
Comex PPG and vice president of PPG’s
Architectural Coatings Latinoamérica
recently told Mexican business publi-
cation El Financiero that the company
sees opportunities for new plants in
Latin America, in countries including:
Perú; Colombia; Panamá; El Salvador,
Guatemala and Honduras, among oth-
ers. “We have plans to expand produc-
tion in Mexico, but also to put small
plants in Central and South America
where they may have a great impact on
the local markets.”
Comex reckons that it controls half
of Mexico’s paint and coatings market,
which is growing at a double digit rate.
Last year, paint volumes increased by
six percent, while sales were at a dou-
ble-digit rate for the company, Achar
noted. In comparison, Mexico’s gross
domestic product is running between
two and three percent, as it has over the
past two years. CW
